Employment levels dip for the first time in 10 months

NAIROBI, Kenya March 4-The rate of employment in February dropped for the first time in ten months as companies faced cashflow issues, a new report shows.

According to Stanbic Kenya Purchasing Managing Index(PMI) compiled through a survey conducted amongst around 400 private sector companies, employment levels dropped as some companies faced cash flow issues following the Covid-led downturn in sales over January.

“Adjusted for seasonal factors, the employment index dropped below the 50.0 no-change mark to signal a decline in staff numbers in February for the first time since April 2021,” the report noted.

According to panelists, the reduction was largely due to a fall in new work in the previous month, which led to some difficulties paying staff.

Even so, the overall drop in employment was only fractional, as hiring activity in response to stronger demand was reported at some companies.

Overall, private sector activity rebounded in February as new orders strengthened after a significant dip at the start of the year due to the Omicron wave of the pandemic.

The headline PMI reading which signals an improvement or decline in business conditions rose above the 50.0 neutral threshold, to 52.9 in February up from 47.6 in January.